Monday, December 19, 2011

Fretting loss of financial sector hegemony, English elites fear rise of German-led United States of Europe

It has long been said that the euro was just a step towards a federal Europe. When the European currency went into crisis, as it would be assured to do so, it would force closer fiscal integration--effectively meaning closer political union.

Closer union appears to be coming true. The euro, in its old form, has fallen into crisis and the price European countries have to pay is a large loss of sovereignty. Nationalists would consider this disastrous. In reality, there are not so many nationalists in Europe these days and many countries, and their populations, consider themselves European and see little problem with further integration.

What is set to happen is that the European super state will hold the cheque book of euro member countries; or at least be able to snap it shut should any one country wish to run away with its local budget.

Money is power and once ultimate budget power is gone, political power will subsequently be drawn into the federal centre. This illuminates the character of the current crisis; it is purely political. Come what may, economic ramifications of the crisis are secondary to those of the political necessities.

Central banks and their job, of fixing interest rates, is the primary bastion of central state control over free markets. Consequently, it is not surprising that this is where the economic trouble has come to a head.

A decade of low interest rates has allowed states in the developed world to build up titanic debts. Europe, with its socialized model, has bloated to such a degree that the world demands higher interest rates to support its debt levels than most of Europe can afford to pay.

Due to these countries sharing a single currency they cannot adjust their currency through relation to cope. They cannot “print” and the ECB is bound by charter and German ire from doing so on their behalf.

They therefore need a hand-out from the better off members of the currency union, in this case Germany.

Germany will only accede to this if it, or a proxy, has control over the purse strings to make sure the wastrel of Europe won’t spend Germany into ruin as well.

The U.K. doesn’t like this one bit as it sees many problems. The U.K. doesn’t like the idea of a United States of Germany and sees that, in a federal Europe, Germany will rule. There is no real reason to loath this idea, except geopolitical pettiness, which of course politics abounds in.

The other reason is the U.K. feels Europe is gunning for the British financial sector, which accounts for 20-25% of the U.K. economy.

This is ironic, as U.K. politicians and media have been pillorying the financial sector for years. However, now like an abusive spouse, the British government is frightened of losing its rich wife. That aside, the perception is that Europe wants to strip that financial industry from London and ship it to Frankfurt and Paris; a unified euro based Europe would present a platform to do just that, leaving Britain a poor toothless semi-autonomous region...MORE...LINK

1 comment:

A genuine European Super State is on the way as it was ordained by God from Eternity past.

Fiat money is dying as a result of banking insolvency and sovereign insolvency in the Eurozone; with the result being failure of global growth.

Banking insolvency in the European Financials, EUFN, especially the National Bank of Greece, NBG, means ongoing currency failure globally, persistent economic contraction, and continued diminished world trade.

Sovereign insolvency will spread from the EU periphery to the EU core. The loss of debt sovereignty will be a catalyst for the formation of a European Super State based upon unified fiscal rules. Bank failures and EU Treasury auction failures, will be the defining issues of the year. These will cause leaders to meet in summits, waive national sovereignty, establish a unified federal authority, mandate a European fiscal union, and establish either the ECB or the Bundesbank, that is Buba, as the Euro’s Bank.

Life in Europe will be characterized as a totalitarian collective. Totalitarian collectivism is the EU’s future. European Socialism will die in 2012. Diktat will provide seigniorage to replace the seigniorage of treasury bonds. Diktat will become a currency, that is a payment used in the exchange of goods or services.

Gary of Between relates that Welt reports Europe’s interbank market is frozen and the continent’s banks are only lending to each other through the ECB due to a lack of confidence within the financial industry, World Bank President Robert Zoellick was quoted as saying. If European banks don’t lend to each other, how can others in the U.S. or in China be expected to do it, Zoellick said.

The seigniorage of fiat money is failing, and the seigniorage of diktat is rising in its place, as is seen in the rise of power of the EU ECB IMF Troika to appoint technocratic government in Greece and Italy. Diktat is rising as a currency to dominate mankind. Libertarian’s desire for Freedom and Free Enterprise are a mirage on the Neoauthoritarian Desert of the Real. And Choice is an epitaph on Neoliberalism’s tombstone.

Bible prophecy of Revelation 13:3-4 foretells that a world wide credit bust and global financial collapse is coming, and that regional global governance will be established. This was foretold long ago when the prophet Daniel explained the Statue of the Progression of Empires to King Nebuchadnezzar in Daniel 2:31-33.